You are here » Home » Companies » Company Overview » Pricol Ltd

Pricol Ltd.

BSE: 540293 Sector: Auto
NSE: PRICOLLTD ISIN Code: INE726V01018
BSE 14:59 | 12 Aug 155.00 -0.65
(-0.42%)
OPEN

158.00

HIGH

158.00

LOW

154.20

NSE 14:44 | 12 Aug 154.90 -0.75
(-0.48%)
OPEN

155.05

HIGH

156.40

LOW

154.25

OPEN 158.00
PREVIOUS CLOSE 155.65
VOLUME 74354
52-Week high 164.45
52-Week low 74.00
P/E 31.96
Mkt Cap.(Rs cr) 1,889
Buy Price 154.65
Buy Qty 342.00
Sell Price 155.05
Sell Qty 397.00
OPEN 158.00
CLOSE 155.65
VOLUME 74354
52-Week high 164.45
52-Week low 74.00
P/E 31.96
Mkt Cap.(Rs cr) 1,889
Buy Price 154.65
Buy Qty 342.00
Sell Price 155.05
Sell Qty 397.00

Pricol Ltd. (PRICOLLTD) - Auditors Report

Company auditors report

To the Members of Pricol Limited

Report on the Audit of the Standalone Financial

Statements

Opinion

We have audited the Standalone Financial Statements of PricolLimited ("the Company") which comprise the Standalone Balance Sheet as atMarch 31 2022 the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) the Standalone Statement of Changes in Equity and the Standalone Statement ofCash Flows for the year then ended and notes to the Standalone Financial Statementsincluding a summary of significant accounting policies and other explanatory information(hereinafter referred to as "Standalone Financial Statements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India including the Indian Accounting Standards ("IndAS") of the state of affairs of the Company as at March 31 2022 its profitincluding other comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SA's)specified under section 143(10) of the Act. Our responsibilities under those Standards arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia ("ICAI") together with the ethical requirements that are relevant to ouraudit of the Standalone Financial Statements under the provisions of the Act and Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion on theStandalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the Standalone Financial Statements of thecurrent period. These matters were addressed in the context of our audit of the StandaloneFinancial Statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter How our audit addressed the Key Audit Matter
Trade receivables and expected credit loss: Our audit procedures included the following:
The trade receivables as at March 31 2022 is ` 22512.91 Lakhs and provision for expected credit loss as on the Balance Sheet date is ` 279.77 Lakhs. (Refer Note. 15) Assessed the appropriateness of the accounting policy for expected credit loss as per the relevant accounting standards.
The Company measures expected credit loss on trade receivables based on significant management judgement and estimates. Obtained an understanding of and assessed the design implementation and operating effectiveness of key controls relating to collection monitoring process credit control process and estimation of expected credit losses.
We have considered assessment of expected credit loss for receivables as a key audit matter because of the significant management judgement involved in its estimation. Tested the controls relating to classification of the receivable balances included in the receivables ageing report.
Reviewed the ageing tested the validity of the receivables discussed with the management on the disputes if any with the customers understood and evaluated the reason for delay in realization of the receivables and possibility of realization of the aged receivable.
Assessed the methodology used by management to estimate the expected credit loss provision and its compliance with the relevant accounting standard.
Assessed the reasonableness of estimate of expected credit loss.
Assessed the adequacy of disclosures relating to trade receivables and related credit risk.
Provisions for litigations and disclosure of contingent liabilities: Our audit procedures included the following:
The Company is involved in litigations both for and against the Company comprising of tax matters legal compliances and other disputes as on the Balance Sheet date. We evaluated and tested the Company's processes and controls for monitoring of litigations disputes compliances and assessment thereof for determining the likely outcome.
The Company assesses the need to make a provision or disclose a contingency on a case-to-case basis considering the underlying facts of each matter in consultation with its legal advisors and lawyers. This involves a high level of management judgement and assumptions which impact the risk assessment and consequential provisioning and disclosure of contingencies in the financial statements. We reviewed the summary of the litigations prepared by the management and discussed the material cases to determine the Company's assessment of the likelihood and magnitude of any liability that may arise.
We evaluated the legal opinion obtained by the Company and assessed the management's judgements and assumptions on such matters. We tested the adequacy of disclosures in the financial statements.
This area is significant to our audit since the completeness and accuracy of accounting and disclosures for contingencies is dependent on such management judgement and assumptions. We also obtained necessary representations from the management in regard to the provisioning and disclosures in respect of the litigations.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Management and Board of Directors are responsible for theother information. The other information comprises the information included in the Annualreport for example Directors' Report and Management Analysis including Annexures thereonbut does not include the Standalone / Consolidated Financial Statements and our Auditor'sreport thereon.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not and will not express any form of assurance conclusionthereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated. If based on the work we have performed we conclude that there is amaterial misstatement of this information we are required to report that fact. We havenothing to report in this regard.

Management's and Board of Directors Responsibilities for the StandaloneFinancial Statements

The Company's Management and Board of Directors are responsible for thematters stated in section 134(5) of the Act with respect to the preparation of theseStandalone Financial Statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including Indian Accounting Standards (Ind AS) specified under section 133 of theAct read with relevant rules issued thereunder. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the Standalone Financial Statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

The Board of Directors is also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of this Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Standalone FinancialStatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to Standalone Financial Statements inplace and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern.

If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the Standalone Financial Statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in (i) planningthe scope of our audit work and in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements in the Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section 11 of section 143 of theAct we give in "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

(2) (A) As required by section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

c. The Standalone Balance Sheet the Standalone Statement of Profit and Loss theStandalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealtwith by this report are in agreement with the books of account.

d. In our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards specified under section 133 of the Act read with relevant rulesissued thereunder;

e. On the basis of the written representations received from the directors as on March31 2022 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2022 from being appointed as a director in terms of section164(2) of the Act;

f. With respect to the adequacy of the internal financial controls with reference toStandalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure 2".

(B) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations as at March 312022 onits financial position in its Standalone Financial Statements - Refer Note. 46 onContingent Liabilities to the standalone financial statements;

(ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note.25 & 31 to the Standalone Financial Statements;

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31st March2022.

iv) a) The Management has represented that to the best of it's knowledge and beliefas disclosed in the Note.73(ii)A to the Standalone Financial Statements no funds (whichare material either individually or in the aggregate) have been advanced or loaned orinvested (either from borrowed funds or share premium or any other sources or kind offunds) by the Company to or in any other persons or entities including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall:

Whether directly or indirectly lend or invest in other persons or entities identifiedin any manner whatsoever by or on behalf of the Company ("UltimateBeneficiaries") or Provide any guarantee security or the like on behalf of theUltimate Beneficiaries.

b) The Management has represented that to the best of its knowledge and belief asdisclosed in Note.73(ii)B of Standalone Financial Statements no funds (which are materialeither individually or in the aggregate) have been received by the Company from any personor entity including foreign entity ("Funding Parties") with the understandingwhether recorded in writing or otherwise that the Company shall:

Whether directly or indirectly lend or invest in other persons or entities identifiedin any manner whatsoever by or on behalf of the Funding Party ("UltimateBeneficiaries") or Provide any guarantee security or the like on behalf of theUltimate Beneficiaries;

c)Based on the audit procedures as considered reasonable and appropriate in thecircumstances nothing has come to our notice that has caused us to believe that therepresentations under sub-clause iv (a) and (b) contain any material mis- statement.

v) The company has not proposed / paid any dividend during the year.

(C) With respect to the other matter to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended;

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act. The remuneration paid to anydirector is not in excess of the Limit laid down under Section 197 of the Companies Act.

For VKS Aiyer & Co
Chartered Accountants
ICAI Firm Registration No.000066S
CS Sathyanarayanan
Partner
Coimbatore Membership No.028328
23rd May 2022 UDIN: 22028328AJNICY6376

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of PricolLimited on the Standalone Financial Statements for the year ended March 31 2022) Inour opinion and to the best of our knowledge & belief the books of accounts andrecords examined by us and according to the information and explanation given to us wereport that

(i) (a) (A) The Company has maintained proper records showing full particularsincluding quantitative details and situation of Property Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of Intangibleassets.

(b) The Company has a regular program of verification of property plant and equipmentby which all the property plant and equipment are verified in a phased manner over aperiod of three years. In accordance with the programme certain property plant andequipment were verified during the year. The periodicity of physical verification isreasonable having regard to the size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such verification. (c) The title deeds of all theimmovable properties (other than immovable properties where the Company is the lesseeand the lease agreements are duly executed in favour of the Company) disclosed in theStandalone Financial Statements included in are held in the name of the Company exceptfor the following:

Rs. Lakhs
Description of Property Property Plant & Equipment As at 31-3-2022 Gross Carrying Value Held in the Name of Whether promoter director or their relative or employee Period Range Reason for not being held in name of Company (including Dispute)
Land 8322.27 Premier From
Building 8639.00 Instruments & Controls Limited No 1972 - 2004 Refer Note below
Investment Property
Land 650.00
Building 1061.00

Note: The title deeds are in the name of the Premier Instruments &Controls Limited. The name of the company was subsequently changed to Pricol Limited.

(d) The Company has not revalued any of its property plant and equipment andintangible assets during the year.

(e) There are no proceedings initiated or pending against the Company for holding anybenami property under the Benami Transactions (Prohibition) Act 1988 (as amended in 2016)and rules made thereunder.

(ii) (a) The inventories except for goods-in-transit were physically verified duringthe year by the Management at reasonable intervals. The coverage and procedure of suchverification by the Management is appropriate having regard to the size of the Company andthe nature of its operations. No discrepancies of 10% or more in the aggregate for eachclass of inventories were noticed on such physical verification of inventories.

(b) The Company has been sanctioned working capital limits in excess of ` 5 crores inaggregate from banks or financial institutions on the basis of security of currentassets. The quarterly returns / statements filed by the Company with such banks orfinancial institutions are in agreement with the books of account of the Company of therespective quarters and no material discrepancies have been observed.

(iii) The Company has not provided any guarantee or security or granted any loans oradvances in the nature of loans to Companies firms limited liability partnership duringthe year. The Company has made investment in its wholly owned subsidiary company whichprima facie is not prejudicial to the interest of the Company. The Company has not madeany investments during the year in any firm LLP or any other parties. Hence clause3(iii) (a) and 3(iii) (c) to (f) of the order is not applicable.

(iv) The Company has complied with the provisions of Sections 185 and 186 of theCompanies Act 2013 in respect of loans granted investments made and guarantees andsecurities provided wherever applicable.

(v) The Company has not accepted any deposit or amounts which are deemed to bedeposits. Hence reporting under clause (v) of the Order is not applicable.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the books of accountmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended prescribed by the Central Government for maintenance of cost records underSection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained by the Company. We have howevernot made a detailed examination of the cost records with a view to determine whether theyare accurate or complete.

(vii) In respect of statutory dues:

(a) Undisputed statutory dues including Goods and Service Tax Provident FundEmployees' State Insurance Income-Tax Sales Tax duty of Custom duty of Excise ValueAdded Tax cess and other material statutory dues applicable to the Company have generallybeen regularly deposited by it with the appropriate authorities.

There were no undisputed amounts payable in respect of Goods and Service Tax ProvidentFund Income-Tax Sales Tax Service Tax duty of Custom duty of Excise Value Added Taxcess and other material statutory dues in arrears as at March 31 2022 for a period ofmore than six months from the date they became payable.

(b) Details of statutory dues referred to in sub- clause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below:

Name of the Statute Nature of dues Amount Period to which the amount relates Forum where dispute is pending Deposits paid under Protest
Excise Duty 676.10 CESTAT
Central Customs Duty 426.16
Excise Act / Service Customs Duty 8.95 1997-98 to 2014-15 Joint Secretary - Ministry of Finance 87.76
Tax Act / Customs Act Excise Duty 120.82 Departmental adjudication
Customs Duty 55.53
CST 301.83 2009-10 to 2013-14 Additional Commissioner
CST 32.44 2014-15 Joint Commissioner Appeals 54.49
VAT 76.81 2012-13 Appellate Tribunal
VAT 449.93 2011-12 to 2015-16 Joint Commissioner Appeals
Central Sales Tax Act CST 8.97 2012-13 to 2017-18 Assistant Commissioner
CST 3.49 2007-08 Appellate Authority
0.87
CST 1.51 2017-18 Superintendent Audit Circle
CST 3.95 2015-16 Departmental adjudication
CST 25.29 2014-15 to 2017-18 Senior Intelligence Officer
47.72 2017-18 Departmental adjudication
Goods and Services Tax Act GST 12.00 2017-18 to 2018-19 Assistant Commissioner -
Employees State Insurance Act 1948 ESI 88.52 2010-11 ESI Corporation 25.31
Total 2340.02 168.43

(viii) The company has not surrendered or disclosed any transactions previouslyunrecorded as income in the books of accounts in the tax assessments under the Income TaxAct during the year.

(ix) (a) The Company has not defaulted in the repayment of loans or other borrowings orin the payment of interest thereon to any lender during the year.

(b) The Company has not been declared wilful defaulter by any bank or financialinstitution or government or any government authority.

(c) Term loans availed by the Company were applied by the Company during the year forthe purposes for which the loans were obtained.

(d) On an overall examination of the financial statements of the Company funds raisedon short-term basis have prima facie not been used during the year for long-termpurposes by the Company.

(e) We report that the Company has neither taken any funds from any entity or personduring the year to meet the obligations of its subsidiaries as defined under theCompanies Act 2013.

(f) The Company has not raised loans during the year on the pledge of securities heldin its subsidiaries.

(x) (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) and hence reporting under clause (x)(a) of theOrder is not applicable.

(b) During the year the Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully or partly or optionally) and hencereporting under clause (x)(b) of the Order is not applicable to the Company.

(xi) (a) To the best of our knowledge no fraud by the Company or on the Company hasbeen noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filedby auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

(c) There were no whistle blower complaints received by the Company during the year.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

(xiii) The transactions with the related parties are in compliance with Section 177 and188 of the Companies Act where applicable and the details of related party transactionshave been disclosed in the financial statements etc. as required by the applicableaccounting standards.

(xiv)(a) The Company has an adequate internal audit system commensurate with the sizeand the nature of its business.

(b) We have considered the internal audit reports issued till date for the periodunder audit.

(xv) The Company has not entered into any non-cash transactions with its directors orpersons connected with its directors and hence provisions of section 192 of the CompaniesAct 2013 are not applicable to the Company.

(xvi)(a) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934. Hence reporting under clause

(xvi)(a) (b) and (c) of the Order is not applicable.

(b) The Company is not a Core Investment Company as defined in the regulation made byRBI and hence reporting under clause (xvi)(d) of the Order is not applicable.

(xvii) The Company has not incurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

(xviii)There has been no resignation of the statutory auditors of the Company duringthe year.

(xix) On the basis of the financial ratios ageing and expected dates of realization offinancial assets and payment of financial liabilities (Asset Liability Maturity (ALM)pattern) other information accompanying the Standalone Financial Statements and ourknowledge of the Board of Directors and Management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatcompany is not capable of meeting its liabilities existing at the date of balance sheet asand when they fall due within a period of one year from the balance sheet date. Wehowever state that this is not an assurance as to the future viability of the Company. Wefurther state that our reporting is based on the facts up to the date of the audit reportand we neither give any guarantee nor any assurance that all liabilities falling duewithin a period of one year from the balance sheet date will get discharged by theCompany as and when they fall due.

(xx) There is no unspent amount under section 135(5) of the Companies Act2013 pursuantto any project under CSR. Accordingly Clause 3(xx)(a) & 3 (xx)(b) of the Order is notapplicable.

For VKS Aiyer & Co
Chartered Accountants
ICAI Firm Registration No.000066S
CS Sathyanarayanan
Partner
Coimbatore Membership No.028328
23rd May 2022 UDIN: 22028328AJNICY6376

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

(Referred to in paragraph 2 under 'Report on Other Legal and RegulatoryRequirements' in the Independent Auditor's Report of even date to the members of PricolLimited on the Standalone Financial Statements for the year ended March 31 2022)

We have audited the internal financial controls over financialreporting of Pricol Limited ("the Company") as of March 31 2022 inconjunction with our audit of the Standalone Financial Statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India("ICAI"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing specified undersection 143(10) of the Act to the extent applicable to an audit of internal financialcontrols both issued by the ICAI. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness.

Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company;(2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2022 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For VKS Aiyer & Co
Chartered Accountants
ICAI Firm Registration No.000066S
CS Sathyanarayanan
Partner
Coimbatore Membership No.028328
23rd May 2022 UDIN: 22028328AJNICY6376

.